OIL Q2 results: Profit dips 43% to ₹1,044 cr as crude realisations fall

The state-owned firm's standalone profit, which excludes earnings from joint ventures and overseas operations, fell to 10.44 billion rupees ($118.8 million)

Indian explorer Oil India reported a 43 per cent slump in second-quarter profit on Friday, as crude realisations, or the price at which it sells the product, declined, while higher expenses also weighed on margins. 

The state-owned firm's standalone profit, which excludes earnings from joint ventures and overseas operations, fell to ₹1,044 cr ($118.8 million) for the quarter ended September 30 from 18.34 billion rupees last year. 

The company's crude oil price realisation slid 14 per cent to $68.19 per barrel, from $79.33 per barrel a year ago. 

While fuel demand in India, the world's third biggest oil importer and consumer, rose for two out of the three months in the July-September quarter, the company's revenue from operations fell 1.1 per cent on-year to ₹5,457 crore. 

 

Prices of global brent crude oil were down 0.25 per cent in the quarter. 

The company's total expenses also jumped about 22 per cent to 4,970 crore, while operating margin for the quarter shrunk to 13.69 per cent from 30.43 per cent a year earlier. 

Oil India's shares dropped 4.7 per cent during the July-September quarter, while larger peer ONGC fell nearly 2 per cent.